EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: AAP, ABX, AIG, BCS, BUD, CI, CLX, COP, DISCA, FSLR, HAR, MA, MGM, NEM, OSK, PRGO, TWC, XOM Friday: CBOE, CVX, LNG, POR, WCG These are just a few of the companies reporting today and tomorrow. Please check the earnings dates for any stocks you own. ADDITIONS TO WATCH LIST: There are several additions to our Watch Lists as follows: Large Cap: MCHP HAR (being re-added) PRGO Mid Cap: LOCK AZPN THOR Small Cap: LIOX TASR (being re-added) NTRI Keep in mind that we have adjusted our trading strategies to allow for an initial entry at the current price. 2nd and 3rd entries will be provided on the annotated charts that will be provided this evening. If you prefer keeping risks low, even if it means missing out on upside, consider waiting for the later entries instead of taking an initial position at current prices. Also remember that stocks will continually be added throughout earnings season. Therefore, review the stocks identified and consider owning those that are most appealing to you. Don't feel compelled to buy every stock added. BRIEF COMMENTS ON WATCH LIST STOCKS: Large Cap Watch List: SCHW - Continuing to hang around its 20 day EMA. HAS - Selling off a bit today after yesterday's bearish dark cloud cover candle. PCLN - Changing trading strategy here. I like entry on a 50 day SMA test now given today's apparent failure to hold its recent breakout. CRM - This one still looks to go higher in my view, but the question is whether we see 50.00 first. Mid Cap Watch List: ASNA - pulled back earlier, but bounced off 20 day EMA support. BRCD - Again trying to get through overhead price and moving average resistance. Needs to close above 8.05, then 8.36. CIEN - Up earlier today, now resting almost squarely on 23.37 price support. DXCM - Consider a second entry on the rising 50 day SMA. Originally, I was looking for second entry on the rising 20 day EMA, but that is essentially at our initial entry of 29.19. FOE - Up more than 4% today on solid volume. Waiting for an entry here appears to be a mistake. Hopefully, we'll get another chance to enter. LXK - Bouncing slightly today. A close back above 36.00-36.25 would likely encourage more technical buyers. MEI - Long-term negative divergence playing out. Today's 50 day SMA could mark the end of the selling, although a close below it could trigger selling all the way down to gap support at 22.40. The selling today triggered our initial entry at 26.00. SAPE - WE'RE REMOVING SAPE FROM OUR WATCH LIST AS EARNINGS ARE APPROACHING AND THE STOCK IS NEAR PRICE RESISTANCE AT 16.00. TIBX - Nearing our second entry at 24.40. UNFI - Changing our strategy here. I'll update the chart tonight, but consider the rising 20 day EMA, currently at 70.76 as our initial entry. Second entry would be at price support close to 69.00. Final entry would be the next price support at 65.50. Gap support would be our closing stop. Small Cap Watch List: BLDR - Moving closer to our second entry at 7.30. ELY - Has been slowly drifting lower. Our second entry is at gap support at 8.11. FSS - Down today and moving closer to the rising 20 day EMA, our initial entry point. SREV - WE'RE REMOVING SREV FROM OUR WATCH LIST AS EARNINGS ARE APPROACHING. ZLC - Nearly touched our revised initial entry at the 50 day SMA before reversing today on increasing volume. DELETIONS FROM OUR WATCH LISTS: We are removing SAPE and SREV from our Mid and Small Cap Watch Lists immediately as they will be reporting earnings within the next few days. We like both, but don't like risking our capital into earnings reports. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com